Property Related Budget Measures 2022

What’s New? The Malta budget 2022 for the local property market

 

Tax incentive for ‘Older’ type properties and property in Urban Conservation Areas

Malta Budget 2022 has introduced an interesting tax benefit for those looking to purchase property in Urban Conservation areas (UCA) and older type properties.  This incentive seeks to encourage people to embrace older buildings and restore and renew.

People who purchase property built more than 20 years ago and which have also been vacant for seven years, as well as, properties in Urban Conservation Areas (UCA) will be entitled to tax waivers both in the form of stamp duties for the buyer and sales tax for the sellers.  The same applies for new properties built in ‘typical Maltese Style’.

The scheme will be capped up to the first €750,000 of the value of the properties. Up to this figure no duties or capital gains tax will be charged and this measure will also apply for properties which are still under promise of sale agreements.

In addition, First-time buyers of such properties will also receive a grant of €15,000 which increases to €30,000 for Gozitan couples who wish to buy such properties in Gozo, thereby encouraging young people to continue to live in Gozo but more importantly to maintain its heritage.

These measures are effective as from 12 October 2021, for a period of 3 years.

VAT refund on renovation works

Malta budget 2022 will also seek to introduce a VAT refund up to €54,000 on the first €300,000 spent on renovation works for specific types of properties and those in Urban conservation areas.  Details of this scheme have still to be issued however, this measure is set to improve the overall environment in Village Cores.

In an attempt to avoid property speculation, such properties cannot be divided (as is the case when they are split up into a number of apartments) if they are to benefit from such schemes.

COVID – Economic stimulus package 

The reduction of the rate of stamp duty to 1.5% on the first €400,000 of the transfer value, and the reduction of income tax on capital gains to 5% on the first €400,000 of the transfer value will not be renewed and therefore all Promise of Sale Agreements (POS) will need to be signed by the 31st December 2021 to avail oneself of these reductions. Final deeds will need to be signed by June 2022.

Sale of rented property to existing tenants

Tax and stamp duty on transfers and acquisitions of property that was previously being rented to tenants eligible for any schemes administered by the Housing Authority shall be reduced by half on the first €200,000 of the value of the property. No tax and stamp duty shall be levied in the case of a transfer of the said property to the previous tenants.

Equity Share scheme extended

The ‘Equity Sharing Plus’ scheme shall be extended to persons over 30 years old and shall provide security for up to 50% of the value of the property.

The Equity Sharing Scheme previously applied to persons over the age of 40, who intend to buy their residence by purchasing at least fifty per cent of the property whilst the rest will have to be purchased by them at later stage. On the other side, the Housing Authority will purchase itself the remaining portion not purchased by the applicants which should not be more than fifty percent of the property. After 20 years, the applicants will be obliged to purchase the Housing Authority’s share by paying the same price paid by the Housing Authority.

 

Malta, blog December

Property Tax Incentives 2021

 

The first €400,000 of a property’s value will continue to be subject to a lower rate of property tax until the end of the year, with the government having extended a measure first introduced last year. 

The government would be extending it to promises of sale finalised by the end of December and with sale contracts due until June 2022. 

The request to extend the incentive came from the Malta Developers Association, with Abela announcing it during a meeting he held with the developers’ lobby group. 

First announced in June 2020, the measure allows property sellers to pay a reduced 5 per cent rate of property tax and buyers to pay a 1.5 per cent rate in stamp duty. The incentive was originally due to lapse at the end of July. 

In the meeting, Abela said that he believed the development and environmental sectors could coexist in harmony and “complement one another”. 

“Our economic vision foresees this sort of balance between the environment and development. What we achieved in energy, we must now achieve in construction.” 

Finance Minister Clyde Caruana, Planning minister Aaron Farrugia, Infrastructure Minister Ian Borg and construction parliamentary secretary Chris Agius joined Abela for the meeting. 

MDA president Sandro Chetcuti said that figures compiled by the association showed that the collective value of promises of sale had risen by €1.4 billion over the past year and that the construction sector had employed over 40,000 people. 

“While we must work to address environmental challenges, we must understand that development contributes 11% added value to the economy, which the government can use to help other sectors,” he said. 

He cited a study by auditing and consultancy firm KPMG, saying it had found that the prices of affordable property had not risen last year for the first time in seven years. 

 

Laber property of the month

Walk With Belair: Looking for sea views? This apartment is the one for you.

 

Only a few minutes’ walk from the fashionable Balluta seafront promenade, this stunning apartment is perfect for someone who prioritises outdoor space, as it enjoys a 45 sqm terrace over valley and sea views.

Having a terrace was previously associated with a property’s entertaining potential… and of course, it still is. However, since Covid, outdoor space has become even more significant – a safe space to catch the sun, enjoy a view, get fresh air and entertain oneself whether in company or not. And the amazing views are certainly a big bonus.

As you walk in through the front door, you are greeted with a wide entrance hall, leading to an open plan fully-fitted kitchen, sitting and dining overlooking the gorgeous terrace ideal for basking in the sun over the valley in complete privacy.

 

Belair Property

 

The fully-finished and furnished property comprises two bedrooms; the main bedroom has a shower en suite, loads of storage and a cosy reading area (which could easily be turned into a gym, nursery or study), while another main bathroom further compliments this unique property. It is served with video hall porter, and interconnecting one-car space accessible with a lift in a spacious garage.

More information about the apartment may be found here.

Bringing the Belair team closer to you than ever before – now you can speak to Belair agents face to face, from the comfort and safety of your own home with Talk with Belair.

Filming & editing: Sarah Salafia

This episode is part of a video series by Belair Property and Newsbook.com.mt called ‘Property of the Month’ and was made possible through a grant by Belair Property.

Before and after building

World Earth Day 2021

 

What is World Earth Day?

EARTHDAY.ORG’s mission is to diversify, educate and activate the environmental movement worldwide. Growing out of the first World Earth Day in 1970, EARTHDAY.ORG is the world’s largest recruiter to the environmental movement, working with more than 75,000 partners in over 192 countries to drive positive action for our planet.

Every year on April 22, Earth Day marks the anniversary of the birth of the modern environmental movement in 1970.

Let’s take a look at the last half-century of mobilization for action.

Click here and take action.

What is Malta doing to bring itself up to speed with Green initiatives?

Open on the 15th February 2021; Minister Aaron Farrugia explained that this initiative is here to having better air quality, water management and biodiversity protection. Having greener streetscapes supports mental health and encourages people to walk more.

PLANTING MORE GREEN INITIATIVES ON BUILDINGS CAN HELP TO CONSERVE BEES = THEY HELP OUR ECOSYSTEM AND PLANET ALIVE

Encouraging bees to pollinate
Honeybees visit only one type of flower in any one foraging trip, says Sarah Wyndham Lewis, author of Planting For Honeybees: The Grower’s Guide To Creating A Buzz. “This is called ‘flower fidelity’ and is what makes them such effective pollinators. So plant large clumps or ‘drifts’ of single species and optimise each of the bees’ trips.” Think swathes of catmint, field scabious and hyssop. “March to September are the key months for honeybees – they will fly whenever the temperature is above 10C, even in winter, so early- and late-flowering plants are especially valuable,” she says.

 

We also caught up with local Architect Nicky Psaila-Savona, this is what he had to say on the scheme:

The Green your Building Scheme was launched earlier this year by the Planning Authority with the intention of reducing the amount of hard landscaping; areas occupied by concrete, tiles etc in our residential areas and replacing them with permanent ‘green’ walls, facades or front gardens. 

It is relatively easy to apply, if you are in fact eligible. All you need to do is speak to an architect or a landscape designed and submit an application with a design which the PA will review.

It needs to be said that many front gardens or facades remain void of any natural greenery well after their construction, so having a scheme that helps out in financing such a set up is a good starting point. However it is in fact just that, a starting point.

Educating the public about the benefits of urban gardens and green roofs is an important part of the process and I think much more needs to be done in this regard.

There is good potential for this scheme to be extended to allow undeveloped plots of land to be given back to the community in the form of urban gardens. Looking at this holistically, the transportation issues can’t be ignored either, as so much of our land mass is taken up by roads and carparks, to the detriment of further green spaces.

“On the other hand it is important to be vigilant about ‘greenwashing’ and some may argue that there are elements of this in the scheme. Especially with the promotion of green walls, which don’t necessarily offer the same benefits to the environment as say mature trees do.”

So although green walls can look good, no amount of them can absorb the amounts of CO2 from our atmosphere, as that of which was being absorbed by the trees which we’re cutting down almost daily.

Audience Poll

If you wish to find out more about the Green Scheme and if you are applicable, kindly contact Nicky on nicky@sapienzasullivan.com

 

Iggy Zammit, Director of Belair Mellieħa had this to say about what he reckons Malta can act on imminently:

” My thoughts on how Malta can get in on helping the environment are :

1)  Step up our recycling projects. We need more on recycling batteries , old mobile phones, and broken appliances.
2)  Switch off StandBy. Enemalta estimates that €80 a year is wasted in the average home because of appliances left on StandBy . That’s a lot of electricity and money wasted .
3)  Buy Local. Supermarket produce can travel thousands of kilometers to get to us here in Malta. We need to start promoting and buying MALTESE. Local Farmers also need better incentives to help them farm the land better and more sustainable. We are what we eat. 
4). If we all picked up litter whenever we see it, imagine what a massive difference this would make to Malta and Gozo. #WaveOfChange

Contact Iggy Zammit on iggy@belair.com.mt to find out more about investing in sustainable homes in the North of Malta.

Gayle Kimberley from Green Deal Malta had this to say about implementing the European Green Deal to Malta:

” Sustainability is not just the latest buzzword. It is the only concrete solution to get us out of this mess we’ve created and give our planet Earth the respect it deserves.

We need to bring about real change to our climate and in my opinion we need to start by making the EU’s economy sustainable. To do that Europe needs a new growth strategy – a total green economic revolution – that will transform the Union into a modern, resource-efficient and competitive economy, one where:

  • there are no net emissions of greenhouse gases by 2050
  • economic growth is decoupled from resource use
  • no person and no place is left behind

We therefore need to begin from the European Green Deal and implement this in Malta. Put simply, the European Green Deal is the EU’s commitment to make Europe climate neutral by 2050. I like to think of it as a green economic revolution – a total transformation of our economy as we know it today, into a green economy. “

Click here to find out more about Green Deal Malta on their newly launched Facebook Page.

Laber property of the month

Walk With Belair: Dar eċċezzjonali fil-qalba tan – Naxxar

Parti mis-sensiela ta’ filmati Property of the Month imħejjija minn Belair Property u Newsbook.com.mt

Jekk qed tfittex proprjetà tassew speċjali, din id-dar fin-Naxxar hija perfetta għalik.

Din it-townhouse f’wieħed mill-iktar irħula mfittxija ta’ Malta, ġiet mibdula f’dar tal-familja sabiħa u prattika.

Id-dar għandha numru kbir ta’ karatteristiċi oriġinali li jinkludu gallarija tradizzjonali Maltija, twieqi stil tradizzjonali li jingħalqu, u aperturi tipiċi kkundizzjonati mill-ġdid.

Fil-proprjetà nsibu kuritur imdaqqas, salott/kamra tal-ikel kbir, salott ieħor ta’ daqs żgħir, kċina/breakfast, kamra tal-banju u ġnien ta’ 70 metru kwadru bi spazju għal pixxina. L-ewwel sular bħalissa jospita tliet kmamar tas-sodda u kamra tal-banju, iżda jista’ faċilment jakkomoda wkoll kamra tal-banju ensuite. L-aħħar sular jinkludi kamra tal-ħasil u s-saqaf tiegħu stess.

Din hija tassew dar eċċezzjonali, bil-potenzjal li tagħmel bidliet kożmetiċi biex tkompli toħroġ il-karatteristiċi sbieħ tagħha. Garaxx għall-kera huwa disponibbli wkoll.

Aktar informazzjoni dwar l-appartament tista’ ssibha hawn. Click to view this Naxxar Property.

It-tim ta’ Belair huwa eqreb lejk minn qatt qabel – issa tista’ tkellem lill-aġenti ta’ Belair wiċċ imb wiċċ, mill-kumdità u s-sigurtà tad-dar tiegħek stess permezz ta’ Talk with Belair.

Dan l-episodju huwa parti minn sensiela tal-filmati Property of the Month, imħejjija minn Belair Property u Newsbook.com.mt, u saret possibbli permezz ta’ għotja minn Belair Property.

 

More Episodes:

Building

Malta Chamber Board Of Management Elected

The President hailed their election as further strengthening of the Malta Chamber in the spirit of continuity of the Chamber’s sterling work over the last two years

Next was the establishment of the Board of Management, which is tasked with advising Council on policy matters and the administration of The Chamber.

Mr Christopher Vassallo Cesareo of Domestica Ltd. was elected Deputy President, while Ms Liz Barbaro Sant of Alberta Group and Mr Nicholas Xuereb of Toly Products Ltd. were elected Vice-Presidents.

Mr Norman Aquilina of Simonds Farsons Cisk plc, Mr Mark Bajada of Bajada New Energy Ltd. and Mr Ian Casolani of Belair Property were elected Officers on the Board of Management.

The President hailed their election as further strengthening of the Malta Chamber in the spirit of continuity of the Chamber’s sterling work over the last two years and the advancement of the Chamber’s economic vision for Malta in the recovery phase and beyond.

Source: https://www.maltachamber.org.mt/en/malta-chamber-board-of-management-elected

Laber property of the month

Walk with Belair: Super spacious St.Julians Apartment

Located a stone’s throw away from the luscious waters of Spinola Bay, this luxury fifth floor, designer-finished apartment forming part of this smart block is just the ticket if you have always wanted to live in the very heart of St Julian’s.

Within walking distance to all sorts of entertainment and amenities, whether its retail shops, supermarkets, cafes, restaurants, pubs, night clubs or enjoying the day at the beach side, this property has it all and is surrounded by hustling and bustling city life.

The property comprises a large open plan fully-equipped combined kitchen/dining area which leads onto a spacious terrace with a view of the sea… ideal for dining al fresco – perfect for those special Maltese balmy summer nights.

The super-spacious apartment also boasts a very large separate living/sitting area in the centre of the property which breaks off the corridor to the sleeping quarters.

The property – which originally had three double bedrooms – has been transformed into an extremely spacious two double bedroom (both with ensuite bathrooms) with the master suite enjoying a stunning large custom-made walk-in wardrobe.

A car space with storage cabinet is also included – a must for this locality!

More information about the apartment may be found here.

Bringing the Belair team closer to you than ever before – now you can speak to Belair agents face to face, from the comfort and safety of your own home with Talk with Belair.

 

Interview

Walk With Belair – Sliema Seafront Apartment

 

Watch: A perfect Sliema seafront home of your very own ( Filming and editing by Sara Salfia - Newsbook )

Sliema is the ideal place to be if you want to be close to all amenities… and if you love the sea. And this superbly and tastefully finished, and fully furnished 260sqm seafront apartment not only enjoys a superb layout, but also boasts of a gorgeous sea view.

When you walk into this highly-finished elevated ground floor apartment you cannot help but be impressed with the spacious combined living room and dining room, with walkout onto a large front terrace ideal for dining al fresco.

The airy apartment also comprises a separate fully equipped kitchen with island, study area, three large double bedrooms (the main enjoying ensuite facilities and a walk-in-wardrobe) and an extra living space / reading area, as well as an extremely spacious back yard of approximately 50sqm ideal for entertaining and which can easily accommodate a splash pool.

The property has been recently refurbished from top to bottom with high-end products and furnishings from top quality brands and includes, concealed, energy efficient air-conditioning throughout, two bathrooms, solid internal doors and heavy-duty apertures.

It also boasts a fully-refurbished washroom at roof level and an optional street level two-car lock up garage (at an extra cost) with 13-course high ceilings just around the corner, with potential for commercial use.

According to Director at Belair Sliema Ltd Gavin Salomone Reynaud, this super property is suitable for an elderly couple downsizing and wanting the Sliema lifestyle with walks on the promenade and all facilities found at walking distance.

Walk With Belair’s Property of the Month is made possible by our collaboration with www.newsbook.com.mt

More info about the apartment may be found here

Furniture delivery by 2 men

Online stores that deliver Furniture in Malta

12 Maltese Online stores that deliver furniture in Malta, furnishings & home decor

 

Online shopping in Malta is skyrocketing in popularity, and it’s no longer just limited to takeaways and small goods; today you can from the comfort of your phone or laptop easily order a wall-unit or wardrobe, have it delivered to your doorstep, and in many cases, assembled. Of course, it doesn’t need to be said: the emergence (and re-emergence) of Covid-19 has also accelerated our shift towards online shopping.

In this article, we go over 11 Maltese furniture and furnishings stores which now allow you to not only explore their catalogue online, but will also give you the option to pay for products electronically and then have them delivered to the address you choose. The process of ordering furniture online and getting it delivered is fairly straightforward: Browse, customise, add the items you want in your shopping cart, register an account (which usually only takes a couple of minutes), and order away or ‘check-out’.

There’s a number of non-local online stores that will deliver furniture to Malta, but for this article, we’re focusing on stores and companies that operate in Malta.

There’s a number of advantages to staying local, such as assembly, easy communication, and guaranteed after-sales service.

1. Megastore

Megastore is a dedicated concierge service for furniture in Malta – in other words, you select the products you want and they’ll arrange the purchase for you from the brands they’ve partnered with. 

Thanks to their partnership with global brands such as IKEA, Neiden and Annons, Megastore have a seriously extensive range of products for the home, encompassing everything from interior and exterior furniture to health and beauty products, toys, electronics, car accessories to gardening equipment.

If you’re a do-it-yourself fan, Megastore also offers a large range of individual furniture components.

They have a 4.9 out of 5 rating based on the opinion of 417 people on Facebook. Check their Facebook page here.

2. JYSK

JYSK is a Scandinavian international retail chain that sells ‘everything for the home’, from furniture, homeware to furnishings.

JYSK is owned by the original founder, Lars Larsen, who is known throughout Denmark as the country’s leading merchant who always has ‘a great offer’. And true to this, you’ll find that they frequently run great discounts on products in their catalogue. JYSK also has a physical store in Triq Il-Mosta, Ħal Lija.

To keep an eye out on their offers, you can follow their Facebook page here. They have a 4.9 out of 5 star rating based on the opinion of 91 people on Facebook, and a star rating of 4.4 based on google reviews.

3. Maltashopper

Maltashopperis an 8 year old family business that makes available products from IKEA, Maison du Monde (a top favourite amongst designers) and Bricoman. To ensure you make the right order, you can get their professionals to measure your space and help you make the purchase. Moreover, they’ll not only deliver but also assemble furniture right at your home upon request

Another noteworthy service for furniture in Malta, Maltashopper provides is the possibility of delivering any furniture you buy from Catania. In other words, you can go to Catania, buy the furniture, and then have Maltashopper deliver the items to you. They have a 4.8 out of 5 star rating based on the opinion of 194 people on Facebook.

4. Homemate

Malta’s largest Home Improvement Centre is now online!

At Homemate, you can find a wide range of products spread across categories that are related to home improvement, from bathroom accessories to bathrooms, paints to coving, curtains and accessories to textiles, bedding, power tools to hand tools, household appliances to a wide range of dining ware, plastic ware, kitchen and cleaning, toys to children’s products amongst others.

Homemate is especially ideal for DIY lovers, making available a vast range of furniture components, tools, timber, metals and more. With over 64000 followers, they are the most popular online store on this list on Facebook.

They have a star rating of 4.4 out of 5 based on the opinion of 2567 reviewers on google.

5. The Atrium

The team at the Atrium shops worldwide to source out a vast range to bring furniture in Malta and accessories for all tastes and budgets.

Bedroom suites, kitchens, outdoor furniture, living & dining rooms, domestic appliances, lighting, flooring, cookware, linen, wardrobes, office desks and chairs, – you name it, the Atrium’s either got it – or can get it for you. 

You can find The Atrium at Giovanni Felice Street in Birkirkara. The Atrium has a 4.3 star rating based on the opinion of 1011 google reviews. Click here to go to their Facebook page.

6. Form

If you’re looking for a store with a more defined focus, thenFormis definitely worth a look.. Their range is not as broad in scope as some of the other stores in this list (you’re not going to find car accessories); instead Form focuses on curating a catalogue of high-quality furniture, and has been doing so since its inception in 1947. Form sources most of its products from internationally recognized brands such as Natuzzi ItaliaRimadesioJesseEuromobilDunlopillo.

You can find Form in Valley Road, Msida. They have a star rating of 4.3 based on 48 google reviews, and a 5 star rating onFacebookbased on the opinion of 7 people.

7. MaltaFurniture Ltd

MaltaFurniture‘s online range includes products from IKEA, CASA (renowned for their homeware) and Keller (highly regarded for their kitchens across Europe). Malta Furniture Ltd also operates its own brand, 2nd Life. All 2nd Life furniture is made from recycled materials, and handmade in their workshop. 2nd Life creates custom-made furniture and furnishings, from bar tables, dining tables, desks, coffee tables, bathroom vanities, or any other piece of furniture.Check out their Facebook page here.

You can visit their showroom in Ħaż-Żebbuġ. Malta Furniture Ltd has a store rating of 4.2 based on 5 google reviews. We concede that’s not a lot of reviews, but on the flip side, Malta Furniture Ltd’s posts get more engagement and positive comments than most other stores, which we believe is just as good as an indicator of great quality.

 

8. Orienta

Established in 1992,Orientaquickly became Malta’s go-to place for exclusively oriental furniture and giftware. Since then, Orienta has expanded its range, adding classical, contemporary and modern furniture as well as customized and stylish Italian Kitchens by Spagnol Cucine. Orienta’s collection is eclectic and unique, bold and beautiful, so if you’re looking to add something a little different for your space, Orienta is definitely worth checking out.

Orienta showrooms are situated in Lija, Ta Qali, and Victoria Gozo.

Orienta has a star rating of 4.4 out of 5 based on the opinion of 14 people on Facebook and a rating of 4.1 out of 5 based on 92 Google reviews.

9. Low Cost Furniture

As one might conclude from their name, LowCostFurniture is dedicated to making available furniture that’s good quality but won’t break the bank.

Their catalogue is supplied by Fairdeal furniture, a well-recognised brand in Malta, and their range includes – but is not limited to – bedrooms, sofas, kitchens, wall units, tables, and chairs.

Low Cost Furniture’s team are available to assemble furniture at an extra charge. They have a 3.4 star rating based on the opinion of 33 Google reviews.

10. Ferracasa

Ferracasa has a diverse range of outdoor and leisure furniture, furnishings, houseware, kitchenware, small electrical appliances and giftware.

They also have a showroom in Lija, Hamrun and Mriehel.

Check out their Facebook page here. Ferracasa got a star rating of 4.8 based on 25 Google reviews.

11. Hometrends

Hometrend‘s online shop offers a diverse range of fireplaces and heating appliances, outdoor, Spa and BBQ furniture, as well as everything you could want for your dining, kitchen and living spaces. They also have a selection of more decorate elements for the home.

Hometrends – babyandkids is another online store operated by Hometrends that’s dedicated entirely to products for kids, babies and new parents. If you want a closer look, this shop is located in San Gwann.

On Facebook, they have a star rating of 4.6 out of 5 Based on the opinion of 20 people. They also have a star rating of 4.2 based on 136 Google reviews.

12. Malta Design

Malta-Design is a Maltese leader for distribution and installation of indoor and outdoor high-end furnitures. Malta Design has contacts with all the manufacturing plants to bring you the solutions you need. Specialists in the distribution and installation of furniture direct from the best brands/industries. 

Their online store operates through a cart system and they promise to deliver within 24hrs from payment. 

Malta Design distributes European premium furniture brands to meet and satisfy all your projects.
To contact their sales force and build a customized project, here is their e-mail:sales@malta-design.com
Article about Covid and property market

Covid-19 Maltese Property Market Reaction

 

How has the Maltese property market been reacting to the Covid-19 pandemic?

by Ian Casolani

 

2020 has obviously been a surreal and challenging year for everyone, no matter what sector one works in, or walk of life they come from. Yet, when considering what Malta, as well as the rest of the world is passing through, the Maltese property market has surprisingly still fared relatively well, although buyers’ attitude and the overall trend has changed and is more reflective of what we have been going through. 

Whereas until mid-2019, buyers in general were picking up pretty much any property they could get their hands onto, often rushing into a purchase just to feel that they are playing the property game, this year that has changed significantly. The Maltese property market has been witnessing increased activity from end users and “real” home buyers. Those looking for a residence, have been taking advantage of the price corrections taking place, as well as the incentives and measures put in place by government earlier this year. Houses with outdoor space, as well as penthouses due to their large terraces, have probably witnessed more demand and activity than the rest of the market and this is primarily down to the fact that many have come to appreciate the value of outdoor space, after having lived through recent Covid restrictions and restricted lifestyle. 

Furthermore, buyers are now thankfully more attentive and diligent in their property search and purchase, which is unfortunately something you see much less of, when the market is booming. This indicates that buyers are monitoring the market more, they are aware of price corrections on property that fit within their search criteria and ensuring that they buy at the right price. The more experienced buyers will not rush into a decision if they are not convinced of the property value, while on the contrary they will typically be quicker to react, if they sense they have found the right buy.

The recent fiscal measures introduced by government, whereby one pays a lower stamp duty when purchasing and a lower tax rate when selling (on the first €400k), have seemed to achieve the desired effect. Those buyers waiting around or procrastinating on their property move, have now been encouraged to make things happen faster and likewise sellers who might have been sticking to their price or waiting for better times, have in some cases been encouraged to bite the bullet and take advantage of the lower tax rate on their sale. 

This pandemic has put many things into perspective and has opened people’s eyes to many realities that might have been taken for granted before. No matter what though, property will always remain the solid investment it is known to be, more so in Malta than anywhere else. Saying that, in an ideal world buyers will continue to be diligent and do their homework properly before buying, rather than rush into a deal simply to feel that they are also playing the game…..as sometimes happens!

Likewise, keen vendors need to acknowledge and often accept the reality of the market and more importantly the real value of their property, if they are really serious about selling. Those who do so and who price their property correctly, are the ones who ultimately sell their property within an acceptable time frame. On the other hand, those vendors who keep living in denial of this reality, are those that waste time and energy hoping for a sale, while anyway having to eventually succumb to the real value of their property.

The year or two ahead will be challenging across the board and this will ultimately also end up affecting the property market in one way or another. This does not simply boil down to Covid-19, but also down to other socio, political and economic issues. Like in anything else, this will differentiate the serious/professional players from those overnight, pop-up developers or agents. Unfortunately, those who possibly over-extended themselves in one way or other over recent years, are likely to be the worst hit, which in turn, however, will possibly provide opportunity to those who have forecasted this scenario a while back. That’s the way the world spins, it won’t be the first time and definitely not the last!

Click here to view this article in Oh My Malta!